Regional Funding Advice 2 WEST OF ENGLAND PARTNERSHIP SUBMISSION

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1 Regional Funding Advice 2 WEST OF ENGLAND PARTNERSHIP SUBMISSION November 2008

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3 Regional Funding Advice 2 West of England Partnership Submission: CONTENTS Page SUBMISSION REQUIREMENTS A1. A summary of the key objectives and outcomes that have been identified in the West of England area to deliver sustainable economic growth 1. Business competitiveness and economic growth 2. Housing 3. Mixed & sustainable new communities 4. Connectivity and accessibility 5. Environmental sustainability A2. Summary of how these objectives contribute to regional objectives and national PSAs related to economic development 9 11 A3. The main barriers to successful delivery of these objectives and outcomes 12 A4. Innovative approaches to delivery that would help overcome the barriers 12 (e.g. expansion to Regional Infrastructure Fund) 1. Managing growth (a) Meeting housing and transport infrastructure requirements as part of managing growth successful (b) Unlocking early the potential of brownfield and under-utilised land and innovating in the development of mixed and sustainable urban communities (c) Providing homes of appropriate quality and price to meet the demand from current and future residents, and especially to enable local employers to recruit and retain skilled staff (d) Supporting the distinctiveness of market towns 2. Responses to the economic downturn 3. Innovation (a) Innovation in project delivery (b) Innovative financing 4. Improved ways of working (a) Spatially-integrated approaches to planning and delivery: a single conversation (b) Revenue support 5. Ensuring environmental sustainability (a) Managing water resources (b) Renewable energy 3

4 A5. Thinking across the themes, a package of priority investments that would contribute to delivering the outcomes identified above. (including evidence for this choice). 1. Sequencing and phasing of priorities 2. Maps and bar charts: planned developments and complementary transport infrastructure 3. Objections to the Proposed Changes to RSS 4. Mixed and Sustainable Communities 5. Local Development Frameworks (LDFs). 6. Infrastructure required and its cost 19 Indicative priority developments in Bristol South Bristol and urban extensions 2. Bristol City Centre and St. Phillips 3. Regeneration of the Northern Arc and Inner City / East, particularly Lockleaze 4. Creating a high-quality, sustainable urban environment 5. Avonmouth / Port of Bristol 6. Employment & skills 7. Cultural investment 8. Digital connectivity Indicative priority developments in Bath & North-Eeast Somerset Bath Centre 2. Bath Western Riverside 3. Lower Bristol Road 4. Bath Urban Extension 5. Market Town Centres 6. South East Bristol Urban Extension Indicative priority developments in North Somerset Weston-super-Mare Regeneration (a) Town Centre (b) South Ward, Weston-super-Mare 2. Weston-super-Mare Urban Extension (a) Employment-led (b) Infrastructure (c) Flood Prevention (d) Transport (e) Remediation 3. Employment and Skills Infrastructure 4. Growth Funding 5. Delivery Vehicle 4

5 Indicative priority developments in South Gloucestershire North Fringe of the Bristol Urban Area 2. Cribbs Causeway /Filton - possible area of search 3. Area of Search D - M32 area 4. East Fringe of the Bristol Urban Area 5. Area of Search C - East of Bristol Urban Area 6. Yate 7. RFA2 Funding bid summary ECONOMIC DEVELOPMENT B1. The most important objectives / actions from the RDA Corporate Plan that should be prioritised: a) At regional level b) Within your sub-region 1. Key economic development priorities for the West of England 2. Substantial investment in infrastructure to support economic development 3. Greater investment in business support through Business Link 4. Employment & Skills 5. Science City 6. West of England engagement with priorities described in the RDA Corporate plan 7. Supporting business and encouraging enterprise 8. Delivering a low-carbon economy: 9. Science and innovation: 10. People and skills: 11. Creating successful places: Communications infrastructure: B2. Opportunities for getting better alignment with other blocks 39 B3. Outside of the RFA funding blocks, other funding streams (private and public) which can be aligned /influenced in respect of economic development HOUSING & REGENERATION C1. Major programmes for the provision of new and affordable housing (C1,2,4) 40 C2. AFFORDABLE Homes IN Rural AREAS 41 C3. Local Authority Estate Regeneration (PA3) C4. Provision of new homes achieving regeneration cross boundary. 5

6 C5. Needs based housing investment (PA5) C6. Investment in Project Delivery Skills (PA6) 42 C7. Impact of the Local Economic Assessment, education and skills package on the schemes identified at C1 to C7 above C8. Shifting from Physical to People Based Regeneration 43 C9. How the Growth Agenda combats deprivation and exclusion C10. Private Sector Renewal Investment (PA10) POST 19 SKILLS D1. What are your most important outcomes for Skills? a) At regional Level b) Within your sub-region 45 D2. Outside of the LSC funds, what other funding streams (private and public) can be influenced? D3. Where do you see better alignment opportunities for those funds identified in 2? D4. What innovative skills activity do you undertake that you feel could/should be rolled out to the rest of the region? 46 APPENDICES 1. Indicative Trajectories 1.1 Housing 1.2 Employment 2. Maps of Housing and Employment Locations 2.1 Bath and North East Somerset 2.2 Bristol 2.3 North Somerset 2.4 South Gloucestershire 2.5 RSS Proposed Changes 3. Schematic Maps, growth regeneration and transport investment 3.1 West of England Schemes in the RFA Programme and Early 2009 Programme Entry Bids 3.2 West of England RFA2 Priority 1 Schemes to 2018/19 Proposed October West of England RFA2 Priority 2 Schemes to 2018/19 Proposed October

7 3.4 West of England Schemes RFA2 Programmed and Priority 1 and 2 Schemes to 2018/19 4. Schedule of Development Programme against Transport Investment 5. Indices of Multiple Deprivation Housing Investment Profile 7

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9 West of England Partnership Submission SUBMISSION REQUIREMENTS A1. A SUMMARY OF THE KEY OBJECTIVES AND OUTCOMES THAT HAVE BEEN IDENTIFIED IN THE WEST OF ENGLAND AREA TO DELIVER SUSTAINABLE ECONOMIC GROWTH High levels of projected growth are forecast in jobs and population, and planned in housing, for the West of England in the period up to 2026; with the economic downturn, lower levels are now expected in 2009 and The schedule at Appendix 1 sets out an indicative sequencing and phasing of this growth in jobs and housing in key locations across the sub-region. This indicative prioritisation will be further examined, confirmed and underpinned as the programme for the production of Local Development Frameworks by each authority is completed; this work will be complemented by collaboration on issues of sub-regional significance, including cross-boundary development locations. The West of England s Vision 2026 sets outs clearly the commitment of the social, economic and environmental partners and strategic organisations to maintaining and enhancing the high quality of life in the sub-region, by managing successfully the projected high levels of growth in jobs, population and housing. In summary, Vision 2026 looks forward to the following achievements: anticipated and shaped high levels of growth successfully; more and better jobs and homes for local people especially in south Bristol and Weston-super-Mare; internationally competitive output, growth, employment levels and skills; urban regeneration ensuring everyone is sharing in increased prosperity; suburban renaissance & urban extensions built on mixed and sustainable communities; public transport solutions and action on climate change enhancing quality of life; attractive to business & investors; influential nationally and internationally. With a population of 410,500 people, Bristol is the largest city in the South West, the urban hub of the West of England and one of the eight core cities in England. It is a prosperous city, nationally and internationally, with a GVA per head that is consistently above the national average. The success of the West of England is forecast to continue. It has been recognised by the Communities and Local Government Department as a Growth Point. The West of England's prosperity is not shared by all its citizens: wards in Bristol and in Westonsuper-Mare suffer from multiple deprivation, with some of the UK s most prosperous areas alongside some of the most deprived. The 2007 Index of Multiple Deprivation at Appendix 5 highlights the most deprived areas in the sub-region. The practical outcomes prioritised by the West of England are as follows. 1. Business competitiveness and economic growth To improve productivity and competitiveness, and safeguard/increase jobs in key sectors including aerospace, engineering, other manufacturing sectors, defence, environmental technologies, high technology, financial services, creative industries, and the rural economy; To increase the availability of serviced-sites and property to encourage business investment, especially in South Bristol and Weston-super-Mare; 9

10 To sustain the knowledge-based economy by increasing basic and higher level skills, improving graduate retention and increasing the rate at which businesses form from R&D work within the four universities in the sub-region; To reduce worklessness and unemployment by addressing pre-employment and intermediate skills, to increase inclusion and address disadvantage; To increase the number, survival and growth rates of starter and small enterprises including social enterprises, in part by the focus and increased resources for Business Link services; To attract inward and indigenous investment in the sub-region. 2. Housing To plan to meet the diversity of size, price and tenure in the housing needs of existing and future residents; To enable an adequate supply of affordable and supported housing, to meet the needs of local people and to enable local employers to recruit and retain staff; To unlock early the potential of brownfield land, identifying and removing technical, financial and policy barriers, in preference to the use of geenfield or greenbelt land; To secure the investment required in economic, social and environmental infrastructure to match the growth in homes and jobs and to create successful, mixed and sustainable communities with access to local services, facilities and jobs. 3. Mixed & sustainable new communities To engage stakeholders, local communities and developers in planning and delivering welldesigned, mixed use and sustainable new and existing communities; To ensure that new communities have access to a full range of community facilities and formal and informal open spaces; To provide a range of facilities and services that meet people s needs, enable community and cultural expression and contribute to the distinctiveness and vibrancy of places and communities; To support the distinctiveness of Market Towns; To support and adopt renewable energy developments as a source of power to reduce reliance on fossil fuels, to develop environmental technology, knowledge-based industries and a secondary business in the installation, repair and maintenance of equipment; To manage water resources to ensure the provision of long term secure supplies of potable water, appropriate drainage and sewerage systems and the alleviation of flood risk. 4. Connectivity and accessibility To secure the investment in the transport system required to match the growth in jobs and homes, and to deliver improvements that tackle congestion, minimise air and noise pollution, reduce high carbon travel and enhance travel choice, to improve quality of life and economic performance; To embed advanced digital connectivity into new developments. 5. Environmental sustainability To deliver new development, in ways that improve and enhance our natural and built environment and heritage and minimise environmental impact; To ensure that all new buildings are energy efficient, capable of being used flexibly in their lifetimes and of high quality design, with the aim of addressing and reducing the effects of climate change. 10

11 A2. SUMMARY OF HOW THESE OBJECTIVES CONTRIBUTE TO REGIONAL OBJECTIVES AND NATIONAL PSAS RELATED TO ECONOMIC DEVELOPMENT The West of England and partners are driving this agenda forward through a Multi-Area Agreement (MAA) which is currently being developed. The table below sets out the key indicators within this agreement and their relation to national PSA targets. Objective MAA indicator National PSA target Sustain high levels of economic growth and Increasing competitiveness Delivering new homes targets, more affordable homes and mixed & sustainable communities No national indicators. Actions relate to promoting innovation and enterprise (Science City), developing employment sites & premises, and inward investment programmes NI 159: Supply of ready to develop housing sites NI 154: Net additional homes provided PSA 1: Raise the productivity of the UK economy. PSA 6: Deliver the conditions for business success in the UK. PSA 7: Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions. PSA 20: Increase long-term housing supply and affordability. PSA 28: Secure a healthy natural environment for today and the future. Delivering transport infrastructure to reduce congestion and increase use of public transport Reducing worklessness and NEET young people; increase level 2 and Level 3 qualified adults NI 167: Congestion on key routes: average journey time per mile during the morning peak NI 177: Local bus passenger journeys originating in the authority area DfT NI 152: Working age people on out of work benefits NI 163: Working age population qualified to at least Level 2 or higher NI 117: 16 to 18 year olds not in education, training or employment (NEET) PSA 5: Deliver reliable and efficient transport networks that support economic growth. PSA 27: Lead the global effort to avoid dangerous climate change. PSA 2: Improve the skills of the population, on the way to ensuring a world-class skills base by Finally, the prioritisation of the West of England interventions and in particular actions to support regeneration and worklessness would align closely with the approach outlined in the emerging national regeneration framework, Transforming Places: Changing Lives, in particular the recognition of the opportunity to connect areas of growth with areas of deprivation within subregions. 11

12 A3. THE MAIN BARRIERS TO SUCCESSFUL DELIVERY OF THESE OBJECTIVES AND OUTCOMES A4. INNOVATIVE APPROACHES TO DELIVERY THAT WOULD HELP OVERCOME THE BARRIERS (E.G. EXPANSION TO REGIONAL INFRASTRUCTURE FUND) 1. Managing growth (a) Meeting transport and housing infrastructure requirements as part of managing growth successfully Transport infrastructure The West of England s priorities for investment in transport infrastructure are as follows. Major Schemes for the RFA2 Period to 2018/19 Schemes in the DfT Programme and early 2009 Programme Entry bids Greater Bristol Bus Network Bath Package Weston Package Rapid Transit Ashton Vale to Emersons Green Phase 1 (Ashton Vale to Temple Meads) Proposed Additional Major Schemes to 2018/19 Scheme Cost m at Out-turn prices SUBTOTAL Proposed Implementation Period Value m North Fringe to Hengrove Package Rapid Transit Hengrove to North Fringe (including M32 Park & Ride) plus North Fringe Package (Stoke Gifford Transport Link and Rapid Transit to Emersons Green) South Bristol Link Phases 1 and Callington Road Link/Bath Road Improvements Greater Bristol Metro Rail Project Cross Bristol rail corridors Weston, Worle, Bristol Temple Meads, Filton Abbey Wood, Bristol Parkway, Yate, Keynsham, Bath M5 junction 21 Bypass Portishead Rail Corridor Rapid Transit Ashton Vale to Emersons Green Phase 2 (Temple Meads to Emersons Green) SUBTOTAL Rapid Transit to Cribbs Causeway Weston-super-Mare Package Phase Rapid Transit to Bristol International Airport Rapid Transit to Kingswood Cycling Major Scheme M5 junction Maintenance Schemes (A38 North South Link, A420 Kingswood to Wiltshire Boundary and Strategic Route North, Yate) SUBTOTAL Priority

13 Proposed Scheduled Major Schemes for the Period 2018/ Second Avon Crossing Weston-super-Mare - BIA Bristol A38 - A370 Barrow Gurney Bypass Saltford Bypass M4 Link Yate Package East Fringe Package South East Bristol Package The grounds for continuing investment in transport infrastructure and its impact within the West of England are as follows. Good transport infrastructure and services are central to the way the sub-region functions, and to delivering its wider social, economic and environmental vision. The West of England transport proposals include a range of strategic schemes which seek to address national, regional and Joint Local Transport Plan objectives. Transport plays a pivotal role in the functioning of the West of England area, allowing people to access jobs, education and other facilities effectively whilst providing them with a range of sustainable travel choices. Traffic congestion is a cost to the economy and a constraint on growth and regeneration. At least 350m is lost to our economy each year and this is expected to rise to 600m by Overall the volume of traffic on the area s roads has grown by 21% over the last 10 years compared to 16% nationally. This impacts on air quality, reduces the reliability of public transport and effects the quality of life in our area. The Greater Bristol Strategic Transport Study June 2006 supported and demonstrated the need for significant investment of more that 1.5 billion over the next 20 years to tackle existing problems and support the proposed growth in population, jobs and housing. The area has seen growth in demand for travel, through new development and increasing levels of mobility, which have outstripped the provision of the new transport infrastructure required to accommodate it sustainably. The scale and timescale of new housing and employment proposed, and the need for this growth to support regeneration and to encourage more sustainable linkages between homes and the services and facilities people need, is challenging. The Eddington Report recommended targeting resources at successful but congested urban centres such as the West of England in order to accelerate economic growth and competitiveness. Increasing the speed at which transport schemes are developed, approved and implemented In order to meet the levels and implementation programme for growth changes are required to the way in which major transport schemes are brought forward to implementation. At the heart of this is a more collaborative approach with DfT to the major scheme bid development, assessment and approval process. There are two key but interrelated stands timescales for bid development, and resources and risk. The RFA Transport Advice Supplementary Note recommends to the Regions that they allow 4-5 years for road schemes and 3-4 years for public transport schemes to progress from Programme Entry bid submission to the start of implementation. This timescale is clearly at odds with the need to resolve the areas current challenges and to bring forward development in the early part of the RSS period. 13

14 Mechanisms need to be jointly explored with Government which would speed up this process. These could include more DfT involvement and guidance at the bid development stage to ensure submissions meet their requirements, swifter passage of bids through the DfT approval process, sharing risks and costs associated with twin tracking eg progressing consents in advance of a Programme Entry decision, and mechanisms to allow elements of packages to be brought forward in advance of Full Approval. In terms of resources the major schemes process places a significant burden on the authorities. New approaches should be considered to assist promoters in resourcing the development of bids, particularly pre-programme Entry when costs are wholly met by the authorities. In addition the ever increasing demands of modelling and appraisal for major schemes adds to cost and timescales. Consideration should be given to the emphasis given to modelling particularly for lower cost schemes, and at Programme Entry bid stage and where schemes have a robust value for money case and the Business Case will therefore not be compromised by refinement through the approval process. Housing Infrastructure Timely investment in both transport and housing infrastructure is vital to managing growth successfully and building mixed and sustainable communities. Appendix 1, Housing and Employment Trajectories sets out the high levels of growth and development required and projected for the West of England, and highlights the scale of investment required in economic, social and environmental infrastructure. Section 5 of this submission sets out in more detail the development and regeneration priorities for the sub-region. To meet these requirements the sub-region will need to maximise the use of public assets, negotiate successfully for developer contributions and make best use of cash flow support. It will also need very substantial public investment if the infrastructure requirements are to be met successfully. At this stage an assessment of strategic infrastructure requirements and costs has not been completed. A specialist consultant is being commissioned to undertake this work, with completion by April (b) Unlocking early the potential of brownfield and under-utilised land and innovating in the development of mixed and sustainable urban communities The Secretary of State s Proposed Changes to the South West s draft Regional Spatial Strategy (RSS) substantially increase the housing numbers required in the West of England. Significant economic growth is also anticipated which should be accommodated within mixed developments to support more sustainable communities and travel patterns. Both housing and employment land also require supporting infrastructure, which brings its own land requirements. Whilst there are some substantial key urban sites currently identified for development, such as Hengrove Park in South Bristol, the majority of this urban growth will need to be found from the long-term redevelopment of existing, currently occupied residential estates and other previously used land, the re-working of open space, and infilling. The greater housing numbers further increase the need for a programme of funding for urban regeneration and investment in infrastructure that supports smaller-scale redevelopment schemes as much as the larger 'key strategic' sites. Such developments should facilitate programmes of sustainable construction, mixed-housing tenure, decentralised energy, high-speed broadband, district centres, and small workspace provision. Although in the long-term these will be required across the urban area as well as in the more dispersed parts of the sub-region, they could initially be rolled out around priority sites as a catalyst unlocking uses and attracting other complementary commercial uses. 14

15 Clearly, it would be important to use market demand, developer contributions and other private sector investment to fund some of these costs. For example, the distribution networks for district heating are hard to develop commercially, whilst the power station and end-systems are normally commercially attractive and can be added as development progresses. Therefore the power station / house end systems may be delivered by the market but the distribution network is likely to require public investment, especially if the sites are to be brought forward at different times. Given the advancement of the Code for Sustainable Homes in the coming years, strategic sustainable energy solutions will be essential. We would therefore propose that funds are set aside to deliver a programme of smaller-scale developments and associated infrastructure. (c) Providing homes of appropriate quality and price to meet the demand from current and future residents, and especially to enable local employers to recruit and retain skilled staff The disparity between the cost of housing and the average wage levels means that the lack of homes within appropriate price ranges is a major constraint on the growth of employment as employees cannot afford to live in the area. We are seeking a long-term commitment to creating new affordable homes through S106, HCA funding and by bringing unoccupied stock back into many more use. (d) Supporting the distinctiveness of market towns This will be supported in the following ways: Taking forward the work developed through the former Market and Coastal Towns programme which was designed to respect their identities and focus on enhancing their characters; Working with locally accountable bodies to facilitate informed discussion over the need for new homes and jobs to support community and commercial facilities as part of our commitment to place-making; Ensuring that distinctiveness and sustainability are built-in. 2. Responses to the economic downturn As with other areas of the South West, the West of England is vulnerable to the effects of the credit crunch and economic downturn. Early evidence of its impact includes: A reduction in planning applications and the delivery of housing. There is evidence of mixed-use developments failing as housing elements are dropped. The fall in house prices may bring a small number of households into affordability but this is likely to be counterbalanced by the fall in supply. Shared ownership schemes are suffering from reluctance to lend and being replaced by interim rents. Registered Social Landlords (RSLs) are taking the opportunity to buy reduced-price stock from developers: this has benefits, but puts plans for mixed-tenure communities are at risk. Business confidence has suffered and there has been a rise in insolvency, indebtedness and unemployment. A number of the West of England s key sectors are at risk, notably finance and banking, but also sectors such as the creative industries, which are characterised by SMEs. The recent LGA report From recession to recovery identified Bristol as one of the national high-risk areas for job losses from , and there is some evidence locally that this is already taking hold. For example, job losses at major house-builders have been reported, with multiplier effects for contractors and a reduction in construction apprentice recruitment, especially in larger firms. The sub-region also stands to lose disproportionately from falling retail sales following the buoyancy of this sector across the sub-region. Significant reductions in capital receipts and developer contributions are reducing our capacity and confidence to invest in regeneration and growth. 15

16 Stepped increases in unemployment are apparent. Indicative of the exposure of the West of England to the downturn, local unemployment is climbing more rapidly than nationally. Over the last 6 months, the number of unemployed claimants resident in the West of England has increased by 28% (or 2,400) compared with 16% nationally. Government action to enhance the capacity and confidence of financial institutions to lend to borrowers and support investment should reduce the length of the recession. The work of government agencies aimed at reducing risk with development projects, supporting the provision of affordable and social housing, and fiscal policies aimed at boosting consumer demand, will also assist. Regional initiatives and proposals aimed at enhancing business support and loan facilities, and support for business innovation and knowledge transfer, will be welcomed by many business sectors. Support for innovation and knowledge transfer is likely to be of particular benefit to the West of England given the importance of knowledge-based businesses to the local economy. The Regional Infrastructure Fund could also provide the opportunity to bring forward the new infrastructure vital to enabling the rapid recovery and future growth of the West of England as well as the regional economy. The West of England authorities are assessing the effects of the downturn on the local economy. They are committed to mitigating wherever practical the adverse consequences for both businesses and individuals, and to working with regional bodies and government to ensure that the depth of the downturn is minimised and that the sub-region maximises its contribution to recovery. We propose that RFA2 funds support a range of responses to these challenges, including those recently put forward by the South West Regional Assembly. In particular, we suggest: Investment that would bring forward the sub-region s transport programme more quickly to accelerate the pace of growth, economic and community regeneration; Measures to unlock development of urban and derelict land sites through land assembly, clearance and bringing development certainties; Infrastructure first : where housing is unlikely to be delivered immediately, a focus on site preparation and supporting infrastructure, with priority given to regeneration areas and brownfield sites, will quicken delivery once the market improves; Mixed communities: the purchase of land to facilitate the future supply of more mixed and balanced communities. In particular, RFA funding could be used to buy land in higher-value areas for future affordable housing. This could be organised through an opportunity fund allowing a rapid response when new sites become available; Targeted business support for at-risk sectors and SMEs; Continued and increased resources for skills, training and support into employment, with enhanced support for those who need to retrain following redundancy or bankruptcy; Additional gap-funding for capital projects or revenue programmes where developer contributions have reduced. Investment proposals: An opportunity fund for 2 years to allow the rapid purchase of value-for-money land or premises; A fund for 2 years to be set aside for business support for at-risk sectors and SMEs and enhanced employment and skills support. 16

17 3. Innovation (a) Innovation in project delivery An impact of the credit crunch is that the delivery of projects can no longer be left to the seemingly inevitable rise in end values to accommodate unplanned costs or to deliver socially necessary outcomes. We would like to work with regional partners to consider innovative solutions to this problem. For example: The effective use of public sector assets to lever investment. The use of Community Development Land Trusts and Community Development Finance Instruments, including transfer of land at base value The development and use of joint ventures, asset-backed delivery vehicles, etc Appropriate risk-sharing arrangements between public and private sectors in project delivery. Improvement of appropriate project development, evaluation and delivery skills that relate to the selected delivery vehicles and reflect the centrality of communities in determining the future of places. (b) Innovative financing Bristol, as one of England s eight Core Cities, has recently launched proposals for Accelerated Development Zones, (ADZ) based on the American model of Tax Increment Financing. This would allow the retention of the uplift in business rates from specified developments for a certain period of time, to pay back borrowing for upfront enabling costs. Although Bristol does not have specific ADZ proposals at the present time, the opportunity may also be of value to other parts of the region, and we would suggest subject to government approval of the model that the RIF be used to front-fund such investment and that this is publicised to potential partners. 4. Improved ways of working (a) Spatially-integrated approaches to planning and delivery: a single conversation A focus on delivering individual projects and funding streams and the associated bureaucracy can delay the work to create more spatially integrated place-based approaches to delivery. To avoid this delay, we strongly support the single conversation approach proposed by the Homes & Communities Agency, and would ask that the RDA and other relevant partners commit to active participation. In addition, we would like to explore the possibility of an envelope or single cheque approach to the funding of an area. (b) Revenue support Planning and delivery across the sub-region require substantial investment in capacity. Funding streams frequently focus on capital investment, but neglect the capacity support required upfront to bring developments and regeneration forward. Consequently, we strongly support the proposal for a Capacity Fund (as originally proposed in RFA1) to help tackle technical issues. For example, urban extensions that involve cross-boundary working require additional co-ordination to ensure that new developments meet the needs of existing and future residents. 5. Ensuring environmental sustainability (a) Managing water resources the provision of long term secure supplies of potable water, the provision of appropriate drainage and sewerage systems and the alleviation of flood risk Adoption of the Code for Sustainable Homes will increase the emphasis on reducing water consumption, through rainwater harvesting, grey water recycling and the use of sustainable urban 17

18 drainage measures. Upstream measures can reduce the levels of flooding and attenuate run off. For example, increasing woodland areas (if appropriate to the ecology of the area) in the upper reaches of the river catchment will have three benefits: reduce the rate at which water flows into water courses; increase the capacity of the landscape to absorb water; add to the amount of carbon captured from the atmosphere. This needs to be complemented by investment in the areas of growth, particularly in central Bath, Bristol and Avonmouth/Severnside, to mitigate flood risk and enable site to come forward for development. An agreement with other authorities and the Environment Agency is necessary so that the decisions on the measures required before development can take place are linked to the housing and jobs trajectory. Projects will not then be delayed because regulatory information is not available. (b) Renewable energy developments as a source of power to reduce reliance on fossil fuels, to develop knowledge based industries and to support a secondary business in the installation, repair and maintenance of equipment. Moving towards carbon neutrality will require the adoption of active measures to reduce the need for fossil fuels; this also needs to be accompanied by measures to reduce the demand for energy. Innovation in energy efficient appliances, low embedded carbon building products and construction methodologies is also required. As new equipment is developed there will be a need for skills to manage and maintain it. 18

19 A5. THINKING ACROSS THE THEMES, A PACKAGE OF PRIORITY INVESTMENTS THAT WOULD CONTRIBUTE TO DELIVERING THE OUTCOMES IDENTIFIED ABOVE. (INCLUDING EVIDENCE FOR THIS CHOICE). 1. Sequencing and phasing of priorities Appendix 1 sets out the indicative sequencing and phasing of the growth in jobs and housing in key locations across the sub-region. The Appendix identifies the priority areas for development in housing and employment; with few exceptions all sites include housing and employment unless they are too small to provide scope for both. Development within the urban areas remains a first priority across the sub-region, coupled with advance planning for the future development of the planned urban extensions. Much of the development within the urban areas will be dispersed; substantial investment in cross-urban infrastructure, as well as site specific, will therefore be required. 2. Maps and bar charts: planned developments and complementary transport infrastructure The distribution of the development is set out in four maps included at Appendix 2 one for each council area. A further set of schematic maps at Appendix 3, as well as a set of bar charts at Appendix 4, identifies the planned and proposed to transport investment to support recent and future areas of growth in housing and employment. 3. Objections to the Proposed Changes to RSS The Secretary of State s Proposed Changes to the Regional Spatial Strategy significantly increase the scale of provision for additional dwellings in the West of England. The West of England authorities have major reservations about the ability of the West of England to accommodate the scale of change proposed by the Secretary of State, without further consideration of the possible effects on sustainability, the environment and quality of life. Together with the West of England Partnership, the authorities have set out their concerns in their formal response to the Secretary of State and are challenging the increases in the proposed changes and their deliverability. However, whether the housing provision for the West of England is closer to the draft RSS or the Proposed Changes, the scale of housing growth in the sub-region will be substantial and will exceed that which occurred in the past. In view of this, the RFA submission, including the housing trajectory, assumes that the Secretary of State confirms the housing provision for the four authorities in the West of England in accordance with the proposed changes, that is 117,350 homes over the period 2006 to The submission also takes account of: Consideration of phasing in line with realistic and up to date expectations of development capacity and realistic timescales for the delivery of the required infrastructure Ongoing technical work undertaken in the sub-region to support the preparation of Core Strategies The scale of infrastructure required is indeed challenging, but if it is not made available there is a real risk that even the lower levels of growth will not be delivered and there will be serious difficulties in achieving the overall ambition of developing more sustainable communities for the future. In various parts of the West of England, the challenge is not just to cater for the needs potentially arising from the growth planned as part of the RSS, but to secure the infrastructure, which is needed to support already committed development. In South Gloucestershire, the challenge is focussed around the North Fringe of the city and includes significant regional developments such as the Science Park, Emersons Green East and a cluster of major housing developments centred on the northern end of the M32. In North Somerset, congestion at M5 Junction 21 and Junction 19, arising from committed development, badly affects access to the motorway and through the junctions. Significant investment in transport infrastructure is essential to support these developments. 19

20 4. Mixed and Sustainable Communities The West of England is committed to building mixed and sustainable communities with appropriate investment in transport, economic, social and environmental infrastructure with local services and facilities and access to jobs. 5. Local Development Frameworks (LDFs). These indicative priorities for development will be confirmed as part of developing each Council s Local Development Framework; in the meanwhile the planning of key sites will continue. 6. Infrastructure required and its cost In the case of some developments indicative costings for infrastructure, mostly those included in the recent round of Growth Point Funding, are provided. A specialist consultant is to be appointed to complete by Spring 2009 an assessment of the strategic infrastructure needs of the priority strategic sites. In the meanwhile the delivery of the housing set out in Councils LAAs relies upon the take up of deliverable sites by developers, as soon as incentives and/or changes in the economy permit. 20

21 INDICATIVE PRIORITY DEVELOPMENTS IN BRISTOL In summary Bristol s priorities for integrated growth, regeneration and investment are as follows: Regenerating existing areas of South Bristol and collaborating with North Somerset especially in securing employment and investment in transport infrastructure. Existing urban areas would be transformed through social economic and physical regeneration, together with significant new employment uses, including offices, new homes and a potential new district centre. Maintaining and enhancing the regional, national and international role of the City Centre, building on the success of the new 500m Cabot Circus retail area and redeveloping parts of St. Philips to provide a greater intensity of higher productivity jobs and homes. Regenerating the Northern Arc and Inner City / East area regeneration, with an early focus on a range of immediate development opportunities in Lockleaze. Support for strategic employment sites at Avonmouth and Severnside, including important industrial and warehousing employment and other port-related activities. Potential investments include flood defences and enhanced transport links, whilst proposals for a Deep Sea Container Terminal may provide additional opportunities and needs. This area is also home to the largest cluster of environmental technologies in the UK, and continued sectoral support would be of benefit, including through land supply. Cultural investment to support Bristol s creative industries sector and in recognition of the city s role as a cultural hub for the wider city-region and South West. Specific investments include the Colston Hall and proposed Bristol City FC stadium. Digital connectivity: ensuring the availability of Broadband/ Next Generation Access Employment & skills: essential for the growth of a more productive economy and in tackling deprivation and disadvantage. Please see overall sub-regional priorities. The identification of these priorities should not detract from the need to invest in the city as a whole: only one-third of the potential housing units identified for the period to 2026 are located on super-major planning sites, that is sites that could provide more than 100 units. This means that the remaining 22,000 units would be spread across the wider urban area. Examples of the support required for this type of development would include sustainable construction, decentralised energy, high-speed broadband, district centres, small workspace provision and more. Similarly, although the priorities can and will be broken down into a series of individual projects, we would strongly support a spatial place-based approach, bringing partners and funding streams together in a single conversation to phase and integrate developments for maximum economic, social and environmental sustainability. This could include an envelope or single cheque approach to the funding of an area. 1. South Bristol and urban extensions South Bristol The successful regeneration of South Bristol is an immediate high priority. Subject to Regional Spatial Strategy and Bristol Development Framework processes, this area is set to deliver up to 12,390 jobs and 12,719 homes in the period from Much of this growth will be achieved through through programmes of estate renewal in Knowle West and brownfield land regeneration at Hengrove Park. The outcome of this will be denser, more sustainable communities supported by diversifying land use to bring homes and jobs closer together and socio-economic mix to stimulate local economies. Comprehensive regeneration of South Bristol would include additional mixed-use, employment, and residential development. The revitalisation of South Bristol will help address imbalances in employment opportunities and travel to work patterns in the city that have arisen as a result of extensive development on the north fringe of the Bristol urban area. It will also improve the current poor retail and service provision in the area and provide a focus for South Bristol. This focus will provide a major opportunity for the council, community and service partners to work together on place-shaping. 21

22 The regeneration of South Bristol will require the release of lower value open space sites and reconfiguration of poor quality urban form to support better comprehensive redevelopment opportunities. This would result in better quality open space overall and a mix of different housing types and tenures. It is essential that regeneration within the urban area is closely tied to the development of urban extensions to South East and South West Bristol. The following are some indicative costs and priority proposals for South Bristol. These should not be considered to be comprehensive. For example, they do not include costs for mainstream utilities. Description Major programmes Delivery of 35% affordable housing. 20% of this to be delivered at nil subsidy; 80% to be delivered at approx. 70k per unit. An early priority is a Local Housing Company for estate regeneration in Knowle West, delivering 3,000 homes, of which 45% would be affordable. This could require up to 78m gap-funding and 77m social housing grant (SHG). In addition: Gap-funding to ensure that LHC homes meet required standards of sustainability would add a further 20m to the costs, 10m of which would be required over the years from The Council is also interested in developing District Housing Infrastructure for these sites. Estimated costs are 18m for the Distribution Network and 18m for power station and house end systems. ERDF urban enterprise programmes (citywide, but with targeting of South Bristol areas). Employment land provision for 12,390 jobs over 20 years. Build costs of offices and industrial / warehouse units to accommodate up to 12,390 jobs (does not include consideration of land values or remediation costs). Employment and skills substantial share of citywide activity to be targeted on South Bristol areas of deprivation. Estimated cost 300m over 20 years *. Sustainability gap-funding: 20m. District Heating: 36m. 20m from TBC 1.4m over 20 years *. Please see below. Transport major scheme priorities: Greater Bristol Bus Network; South Bristol Link Phases 1 & 2; Callington Road Link / Bath Road improvements; North Fringe to Hengrove Package; Rapid Transit Ashton Vale to Emersons Green Phases 1 & 2; Rapid Transit to Bristol International Airport. Please see transport submissions. Specific projects for early delivery (further details available in Growth Points Programme of Delivery). Local Housing Company: estate regeneration in Knowle West and associated See above. infrastructure / sustainability see above. Knowle West Media Centre Stage 2: Managed workspace, business support & digital connectivity for creative businesses. Community facilities and support for young people into employment. Hengrove Park: gap-funding for Phase 1 housing delivery + delivery of Phase 2: 1200 housing units, serviced employment land and public park. Provision of Next Generation Access broadband for 1200 homes. South Bristol District Centre: identification of location and phasing for development Whitchurch: library & community facility; running track relocation; Park & Ride; bypass. Bristol City Football Club Stadium. Specific proposals tbc. Other investment in community facilities, green infrastructure, etc. 5.2m 8.5m 1.2m 4.5m Library, etc: 3.6m; Running track: 4m. Other costs tbc. Not yet known. Tbc 22

23 Description Revenue funding (as per Growth Points Programme of Development) New Growth Bristol: planning support to bring on stream additional housing (including SSAs) and project management capacity to deliver the infrastructure required to support growth in Bristol and to plan urban extensions. Bristol Development South East Bristol extension: accelerated review and assessment of capacity for new homes, employment and associated infrastructure. * Profiling / trajectories available on request. Estimated cost 1.4m 0.3m Urban extensions to South East and South West Bristol Two major urban extensions are proposed on the edge of the Bristol City Council administrative area, to the South West and South East, of which some 1,500 new homes are indicated within the Bristol boundary for each. Bristol is working with its West of England neighbours to plan for these in a coherent way, that supports redevelopment and regeneration in South Bristol rather than detracts from it, that complements the existing and growing urban network of employment and retail centres - especially those in deprived areas - rather than compete with them, and that is environmentally efficient in its use of land and other resources. The latter means adopting 'urban' levels of housing density, activity and connectivity and similar standards of urban and sustainable design as those expected within the city. Bids for major transport schemes which would accommodate growth within and beyond the existing boundary have been prepared and are identified in the transport 'block'. These would come to fruition after In the meantime the suggestions for South Bristol regeneration, if phased to support regeneration within the city first, would support a coherent approach to development. 2. Bristol City Centre and St. Phillips Bristol City Centre The city centre has a pivotal role in the economic future of Bristol, not least as the focus of commercial, retail and cultural activities. The centre offers a sustainable location for future growth, sitting at the centre of travel networks. It provides significant opportunities in further developing the role of the city as a knowledge-based economy and enhancing international competitiveness. Within the city centre a number of areas and sites of major change need to be identified, further developing the City Centre Strategy These further areas of change include promoting a higher density and mix of development of the existing Broadmead, Nelson Street and St James Barton area, capitalising on the recent development of Cabot Circus. St. Philips Redevelopment of the area of St Philips north of the Feeder Canal is proposed to accommodate an increased density of employment and other uses, to provide jobs, homes and connections to improve the prospects of neighbouring areas with high levels of deprivation, and to improve accessibility to the main rail links and the City Centre. A comprehensive approach is required to address a range of issues, in particular the impact of redevelopment on existing businesses and flood risk, and to take advantage of the opportunity to plan and enhance the area as a whole, rather than in an incremental way. The location of redevelopment would maximise the potential of the proximity of the station, Temple Quay and the former Temple Meads diesel depot site whilst promoting developer, market and business interest in an attractive destination. The area could improve access to a more balanced range of jobs, services and additional housing for adjacent areas with high deprivation. Accessibility to the area would need to be substantially improved, including the provision of new infrastructure such as bridges, road capacity and public transport. 23